 Strategic Management: Strategic Managment Gregory G. Dess,
University of Texas at Dallas
G.T. Lumpkin,
University of Illinois--Chicago
Implementing Strategy: Creating Effective Organizational Designs
References| 1. This example draws on Rosenwein, R. 2000. Computer woes unhinge furniture maker. Inc., December:37.
2. This discussion draws upon Chandler, A. D. 1962. Strategy and structure. Cambridge, MA: MIT Press; Galbraith J. R. & Kazanjian, R. K. 1986. Strategy implementation: Structure, systems, and process, St. Paul, MN: West Publishing; and Scott, B. R. 1971. Stages of corporate development. Intercollegiate Case Clearinghouse. 9-371-294, BP 998, Harvard Business School.
3. Our discussion of the different types of organizational structures draws on a variety of sources, including Galbraith & Kazanjian, op. cit.; Hrebiniak, L. G. & Joyce, W. F. 1984. Implementing strategy. New York: Macmillan; Distelzweig, H. 2000. Organizational structure. In Helms, M. M., ed. Encyclopedia of management. Farmington Hills, MI: Gale:692–99; and Dess, G. G. & Miller, A. 1993. Strategic management. New York: McGraw-Hill.
4. This example draws on Collis, D. J. & Montgomery, C. A. 1998. Creating corporate advantage. Harvard Business Review, 76(3):70–83.
5. Schein, E. H. 1996. Three cultures of management: The key to organizational learning. Sloan Management Review, 38(1):9–20.
6. For a discussion of performance implications, refer to Hoskisson, R. E. 1987. Multidivisional structure and performance: The contingency of diversification strategy. Academy of Management Journal, 29:625–44.
7. For a thorough and seminal discussion of the evolution toward the divisional form of organization structure in the United States, refer to Chandler, A. A. 1962. Strategy and structure. Cambridge, MA: MIT Press. A rigorous empirical study of the strategy and structure relationship is found in Rumelt, R. P. 1974. Strategy, structure, and economic performance. Cambridge, MA: Harvard Business School Press.
8. See, for example, Hill, C. W. L., Hitt, M. A. & Hoskisson, R. E. 1988. Declining U.S. competitiveness: Reflections on a crisis. Academy of Management Executive, 2(1):51–60.
9. Ghoshal, S. & Bartlett, C. A. 1995. Changing the role of management: Beyond structure to processes. Harvard Business Review, 73(1):88.
10. Koppel, B. 2000. Synergy in ketchup? Forbes, February 7:68–69; and Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. 2001. Strategic management: Competitiveness and globalization. 4th ed. Cincinnati, OH: Southwestern Publishing.
11. Pitts, R. A. 1977. Strategies and structures for diversification. Academy of Management Journal, 20(2):197–208.
12. Wetlaufer, S. 2000. Common sense and conflict: An interview with Disney’s Michael Eisner. Harvard Business Review, 78(1):121.
13. Daniels, J. D., Pitts, R. A. & Tretter, M. J. 1984. Strategy and structure of U. S. multinationals: An exploratory study. Academy of Management Journal, 27(2):292–307.
14. Habib, M. M. & Victor, B. 1991. Strategy, structure, and performance of U.S. manufacturing and service MNCs: A comparative analysis. Strategic Management Journal, 12(8):589–606.
15. Collis & Montgomery, op. cit.
16. Pfeffer, J. 1998. The human equation: Building profits by putting people first. Cambridge, MA: Harvard Business School Press.
17. Augustine, N. R. 1983. Augustine’s laws. New York: Viking Press.
18. See, for example, Hoskisson, R. E., Hill, C. W. L., and Kim, H. 1993. The multidivisional structure: Organizational fossil or source of value? Journal of Management 19(2):269–98.
19. Magretta, J. 1998. The power of virtual integration: An interview with Dell Computer’s Michael Dell. Harvard Business Review, 76(2):75.
20. Forster, J. 2001. Networking for cash. Business Week, January 8:129.
21. Dess, G. G., Rasheed, A. M. A., McLaughlin, K. J. & Priem, R. 1995. The new corporate architecture. Academy of Management Executive, 9(3):7–20.
22. Barnes, C. 1998. A fatal case. Fast Company, February–March:173.
23. Handy, C. 1989. The age of unreason. Boston: Harvard Business School Press; Ramstead, E. 1997. APC maker’s low-tech formula: Start with the box. The Wall Street Journal, December 29:B1; Mussberg, W. 1997. Thin screen PCs are looking good but still fall flat. The Wall Street Journal, January 2:9; Brown, E. 1997. Monorail: Low cost PCs. Fortune, July 7:106–8; and Young, M. 1996, Ex-Compaq executives start new company. Computer Reseller News, November 11:181.
24. S. Tully. 1993. The modular corporation. Fortune, February 8:196.
25. For a recent review of the relationship between outsourcing and firm performance, see Gilley, K. M. & Rasheed, A. 2000. Making more by doing less: An analysis of outsourcing and its effects on firm performance. Journal of Management, 26(4):763–90.
26. Quinn, J. B. 1992. Intelligent enterprise: A knowledge and service based paradigm for industry. New York: Free Press.
27. This discussion draws upon Quinn, J. B. & Hilmer, F. C. 1994. Strategic outsourcing. Sloan Management Review, 35(4):43–55.
28. See for example, Stuckey, J. & D. White. 1993. When and when not to vertically integrate. Sloan Management Review, Spring:71–81; Harrar. G. 1993. Outsource tales. Forbes ASAP, June 7:37–39, 42; and Davis, E. W. 1992. Global outsourcing: Have U.S. managers thrown the baby out with the bath water? Business Horizons, July–August: 58–64.
29. The opening three paragraphs draw on Kanter, R. M. 1989. Becoming PALS: Pooling, allying, and linking companies. Academy of Management Executive, August:183. Some authors have used a similar term, constellational structures, to refer to organizations that are strongly tied to highly supportive collectives. For an illuminating perspective on how such structures can lead to higher growth and flexibility and lower costs in the Italian textile industry, refer to Lorenzoni, G. & Ornati, O. 1988. Constellations of firms and new ventures. Journal of Business Venturing, 3:41–57.
30. For a discussion of knowledge creation through alliances, refer to Inkpen, A. C. 1996. Creating knowledge through collaboration. California Management Review, 39(1):123–40; Mowery, D. C., Oxley, J. E. & Silverman, B. S. 1996. Strategic alliances and interfirm knowledge transfer. Strategic Management Journal, 17, Special Issue, Winter:77–92.
31. Doz, Y. & Hamel, G. 1998. Alliance advantage: The art of creating value through partnering. Boston: Harvard Business School Press.
32. Barringer, B. R., & Harrison, J. S. 2000. Walking a tightrope: Creating value through interorganizational alliances. Journal of Management, 26:367–403.
33. Davis, E. 1997. Interview: Norman Augustine. Management Review, November:14.
34. Bartness, A. & K. Cerny. 1993. Building competitive advantage through a global network of capabilities. California Management Review, Winter:78–103. For an insightful historical discussion of the usefulness of alliances in the computer industry, see Moore,
J. F. 1993. Predators and prey: A new ecology of competition. Harvard Business Review, 71(3):75–86.
35. See Lorange, P. & Roos, J. 1991. Why some strategic alliances succeed and others fail. Journal of Business Strategy, January–February:25–30; and Slowinski, G. 1992. The human touch in strategic alliances. Mergers and Acquisitions, July–August:44–47. A compelling argument for strategic alliances is provided by Ohmae. K. 1989. The global logic of strategic alliances. Harvard Business Review, 67(2):143–54.
36. Some of the downsides of alliances are discussed in Das, T. K. & Teng, B. S. 2000. Instabilities of strategic alliances: An internal tensions perspective. Organization Science, 11:77–106.
37. This section draws upon Dess, G. G. & Picken, J. C. 1997. Mission critical. Burr Ridge, IL: Irwin Professional Publishing.
38. Katzenbach, J. R. & Smith, D. 1994. The wisdom of teams: Creating the high performance organization. New York: HarperBusiness.
39. Hammer M. & Champy, J. 1993. Reengineering the corporation: A manifest for business revolution. New York: HarperCollins Designs
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